The EBRD will finance the construction of the southern section of the Sisian-Kajaran road, part of the North-South Multimodal Corridor. An agreement with Armenia has been signed for €236 million.
Armenia's Minister of Finance Vahe Hovhannisyan and the Executive Director of the Sustainable Infrastructure Group of the European Bank for Reconstruction and Development Nandita Parshad, signed a €236 million credit agreement on May 15 for the construction of the 24.2 km southern section of the Sisian-Kajaran "North-South" road.
Parshad noted that it is a great honor for the bank to be in Armenia and sign an agreement to finance the construction of the southern section of the Sisian-Kajaran road, which will also "attract significant investments, contribute to trade, and promote the prosperity of the Armenian people."
"This project is a strategic priority for Armenia, providing connectivity and access to Europe and beyond, a key element of the North-South corridor and the extended Trans-European transport network, and therefore part of the EU's flagship global transport program," emphasized Nandita Parshad.
The Sisian-Kajaran section is significant as it will significantly reduce the existing road distance from the Iranian border into Armenia: the distance from Kajaran to Sisian will be reduced from 118 to 60 km, and the average travel speed will increase from 50 to 100 km/h.
The new road is divided into three sections: northern, central (Bargushat tunnel), and southern. The EBRD loan will be used to construct the southern section, 24.2 km long, from Kajaran to the future Bargushat tunnel, several kilometers in length. This section will include the construction of five smaller tunnels and 11 bridges. The work is scheduled to be completed by November 2030.
The new North-South route is the largest road construction project in Armenia's history. It will include the construction of 27 bridges and 9 tunnels. The total project cost is estimated to be around $1 billion. It is expected that the construction of other sections of this road will be financed by the European Investment Bank (EIB), the Asian Development Bank (ADB), and the Armenian government.
